The ICSID Convention and nationals of another contracting State that are owned by nationals of the respondent State: back to basics

Abstract

ABSTRACT: The ICSID tribunal in Venoklim Holding B.V. v. the Bolivarian Republic of Venezuela held in its award that the claimant, though incorporated in The Netherlands, did not qualify as a foreign investor under the ICSID Convention because it was owned by Venezuelan nationals. However, this holding is contrary to the plain meaning of the ICSID Convention and runs counter to established case law on the issue. Thus, the purpose of this article is to review the ICSID Convention and relevant ICSID jurisprudence to show that Venoklim Holding B.V. and all foreign juridical persons that are owned by nationals of the respondent State should be considered as foreign investors under the ICSID Convention over which an ICSID tribunal has jurisdiction.